Panel Report Critical Of E-Rate

A House subcommittee has completed a yearlong investigation into fraud and abuse involving the government's e-rate subsidy, and sources said that the resulting bipartisan study is highly critical of the current system. The subcommittee originally was slated last Friday to meet to consider adopting the report. But the meeting was postponed until Oct.18 due to scheduling conflicts, as legislators sought to leave town for the Columbus Day recess. The $2.25 billion e-rate, which lowers Internet connection costs for schools and libraries, is a component of the larger $6.5 billion universal service program for subsidizing telecommunications service in rural and low-income areas. House Energy and Commerce Committee spokesman Terry Lane said the report documents ample evidence of wastefulness and misuse of funds. The study, prepared by the committee's Oversight and Investigations Subcommittee, will recommend ways to improve management, with the goal of minimizing abuse.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
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